Federal Reserve Chair Jerome Powell is at the center of a political storm after being accused of misleading Congress about the cost and scope of the Fed’s planned headquarters renovation. Initially estimated at $1.9 billion, the project has ballooned by over 30% and allegedly includes luxury elements that Powell previously denied under oath.
🔹 Call for Immediate Congressional Action
Bill Pulte, Director of the Federal Housing Finance Agency, has called on Congress to launch an urgent investigation. He claims Powell’s testimony was deceptive and grounds for removal. Pulte warns of "political bias" and increasing frustration over the Fed’s lack of transparency.
🔹 Hidden Luxuries: What the Documents Reveal
Despite Powell’s testimony that the project wouldn’t include VIP elevators, rooftop gardens, or marble finishes, official documents show otherwise. The National Capital Planning Commission noted plans to renovate private dining rooms, extend the governors’ elevator, and add rooftop terraces and water features.
🔹 Strong Words from Inside the Fed
Former Fed economist Andrew Levin urged the Senate to act: “No senior Fed official should be allowed to lie to Congress—under any circumstance.”
🔹 Senate Responds with Sharp Criticism
Senator Cynthia Lummis said Powell’s testimony was clearly unprepared and questioned his credibility. Senator Tim Scott added that Powell’s report was “misleading and inaccurate.”
🔹 Politically Motivated Attack?
The controversy comes as Trump and his team pressure the Fed to cut interest rates. Trump recently called Powell a “stupid man” and demanded his resignation. Meanwhile, the Fed has reported $233 billion in losses over the past three years, further intensifying scrutiny of its leadership.
🔹 Powell Defends His Position
Despite the backlash, Powell maintains that interest rates must remain steady to fulfill the Fed’s dual mandate: maximum employment and price stability. He insists central bank decisions must remain free from political influence.
#Fed , #FederalReserve , #JeromePowell , #USPolitics , #investigation
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